Hong Kong-based Aircraft Recycling International (ARI) has bought Universal Asset Management, (UAM), one of the world’s leading global aviation services providers.
UAM has nearly three decades of commercial and technical experience managing customers’ aviation assets, disassembling aircraft and supplying aftermarket components to the commercial aviation industry.
It will be a wholly-owned US subsidiary of ARI, responsible for ARI’s aircraft recycling business overseas, and a part of its global disassembly and distribution platform.
Together, ARI and UAM will provide global solutions for aging aircraft, in a move designed to consolidate the status of their parent company as a full value-chain aircraft solutions provider.
ARI is a member company of China Aircraft Leasing Group Holdings (CALC).
Christina Ng, deputy chief executive officer and chief operating officer of ARI, has been appointed as chairwoman of UAM, while Keri Wright and Shawn Kling will continue to lead UAM’s operations as chief executive officer and president respectively.
UAM will retain its brand name and continue to operate with the same management team, and all staff will remain in place across all its business units.
ARI says it plans to leverage UAM’s well-established global brand and track record of serving more than 1,000 customers in 150 countries to expand into overseas markets.
In turn, UAM will leverage ARI’s growth capital, and draw upon CALC’s network and resources, to advance further growth of its portfolio.
Ng said: “This brings together the strengths and expertise of both ARI and UAM to ensure a strategic business deployment that will capture huge potential in the mid- to late-life aircraft management industry, and will see aircraft completely managed through their full lifecycle, which will enhance the asset value of aircraft fleets.
“While expanding our presence in global markets, ARI will further enhance our total aircraft solutions for aging aircraft, so as to cater to the specific needs of the Chinese market.”
ARI is mainly engaged in asset management and total aircraft solutions relating to aging aircraft. It is currently constructing an aircraft recycling facility in Harbin, China.
CALC recently announced it has completed the deliveries of one Airbus A320 each to AirAsia Berhad and Thai AirAsia, bringing the lessor’s fleet size to 83 aircraft.
The group is in the process of implementing an expansion plan to increase the size of its fleet to 173 by 2022. Its currently supplies 17 airlines, extending across Europe, Southeast Asia, Japan and the US.
CALC revenues rose 58% to HK$2,448.1 million last year on the back of continued expansion of the aircraft leasing business and gains from the disposal of finance lease receivables. Net profit grew 67.9% to HK$638.4 million, while total assets rose 29% to HK$31 billion.
The group maintained a 100% aircraft lease occupancy rate in 2016.
Mike Poon, CEO of CALC, said: “In 2016, we took full advantage of the opportunities presented by the market and enhanced our position as a leading full value-chain aircraft solutions provider by proactively implementing our globalization strategy and fleet expansion plan.
“Looking ahead, we see the demand for full value-chain aircraft solutions increasing as airline fleets continue to expand, age and retire. With the aircraft disassembly center to commence operations soon, we are well placed to deliver profitable growth and create excellent shareholder value in the future.”